Deal: IndiGo Secures $328 Million Financing from Citi for Aircraft Purchase – Here Are the Details
IndiGo, the country’s largest airline, has signed a $328 million financing agreement with Citi to purchase eight narrow-body aircraft. These aircraft will be manufactured by Airbus. This marks the world’s first aviation financing transaction insured by Credendo, the Belgian export credit agency (ECA). It is also the first ECA-backed aviation financing deal structured through GIFT IFSC.
This financing will assist IndiGo in acquiring six A321 and two A320 aircraft. Global banking major Citi acted as the sole mandated lead arranger, ECA coordinator, and sole lender for the deal. The financing is backed by credit insurance from Credendo. The transaction was executed through IndiGo’s subsidiary, InterGlobe Aviation Financial Services IFSC. It provides a competitive and diversified source of long-term funding for IndiGo’s fleet and network expansion.
K. Balasubramanian, Chief Executive of Citi India, stated that this solution connects Indian aviation with ECA-backed international liquidity, supporting the next phase of India’s aviation growth. Frank Vanwing, Group Deputy CEO of Credendo, remarked that the Belgian ECA aims to become a long-term partner for aviation stakeholders.
What makes this agreement unique?
This agreement represents a first-of-its-kind solution. It combines Citi’s expertise in cross-border aviation and ECA financing with Credendo’s credit insurance and IndiGo’s use of the GIFT IFSC platform. It opens up a significant new avenue for Indian aviation. This is significant for stakeholders seeking access to international opportunities and innovative financing structures.
What are the benefits for IndiGo?
Riyaz Peermohamed, IndiGo’s Chief Aircraft Acquisition and Financing Officer, described this partnership as significant. He stated that the collaboration with Citi, Crédito, and Airbus provides a competitive source of liquidity for IndiGo’s growing Airbus fleet. This transaction demonstrates GIFT IFSC’s capability to create innovative financing solutions for Indian aviation, helping to bring together international banks and export credit agencies.
